Nissan Motor officially suspends production of its vehicles in Russia

Nissan Motor officially suspends production of its vehicles in Russia

 Nissan Motor decided to suspend production of its vehicles in Russia for the first half of this year starting April 1, 2022 due to the worsening conflict between Russia and Ukraine. "Workers have been notified and the automaker will continue to monitor the situation and minimize its impact." said Nissan Motor CEO, Makoto Uchida as reported by Reuters on Wednesday (29/6/2022). Previously, Nissan had stopped the export of automotive products in Russia in March, after the Russian invasion of Ukraine. 

The production suspension comes as companies around the world are under pressure to cut business ties with Russia. According to the Teikoku Databank, only 2.4 percent of Japanese companies still operate in Russia. Meanwhile, Nissan's alliance partner, Renault SA, withdrew from Russia in May after drawing criticism for its presence in the country. Uchida also said that Nissan had been in talks with Renault about the future of electric vehicles (EVs) after the French automaker hinted at selling off its EV units.

 Renault overhauled its business in response to the electrification of the auto industry and in April, Renault considered all options including registering its EV business. Nissan, the electric car pioneer Leaf, said it was too early to consider ditching its own EV division. "We will carefully explore the issue from every angle, and decide for ourselves," said Uchida. 

Nissan, which has a 15 percent non-voting stake in Renault, will disclose the contents of the agreement in its annual securities report, as long as it does not violate its obligations of confidentiality. Nissan will also not be directly involved with the restructuring with former major supplier Marelli Holdings Co Ltd, although it will continue the collaboration.

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